NISA RETAIL Nick Read, CEO

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1 NISA RETAIL Nick Read, CEO

2 Collective Purchasing

3 WHERE DID NISA COME FROM?

4 WHERE DID NISA COME FROM?

5 WHERE DID NISA COME FROM? Nisa was designed to provide benefits to independent retailers At the core of that were benefits of scale through collective purchasing Concept brought competitive advantage to retailers Nisa grew dramatically becoming a national business And expanded into central distribution to better serve its members

6 THE EVOLUTION OF NISA? Nisa was founded as a co-buying enterprise Central negotiators doing deals on which larger independent retailers bought directly Retailers could compete and earn retrospective discounts

7 THE EVOLUTION OF NISA? Embarked on central distribution activity To provide suppliers with an efficient route to market Model embraced and deals ensued Central distribution opened the groups potential to a wider audience of retailers

8 THE EVOLUTION OF NISA? Central distribution enabled significant rationalisation of supplier deliveries Maximised volume through the business Achieved greatest efficiencies and buying benefits Enhanced incentives grew volume further

9 HOW DOES NISA LOOK TODAY? THE SCALE Nisa has over 1,300 members Operating more than 3,000 stores across the UK & ROI Has an accumulated buying power of over 1.4bn The majority of this is grocery based, not tobacco or nonnegotiable volume deals Over 2m cases & 21,500 deliveries a week Availability at over 98%

10 HOW DOES NISA LOOK TODAY? Members continue to enjoy mutual principles of the group Nisa committed to ensuring ALL members benefit Principle drives recruitment more members more benefits

11 THE NEXT STEPS So how does Nisa ensure it recruits and retains volume and guarantees retailers purchasing loyalty? Nisa s new trading strategy has price & integrity at its core To future proof the Nisa trading position for the benefit of our members, customers and the communities we serve Through disciplined range, price and offer integrity, build quality brands & operational excellence

12 THE NEXT STEPS So how does Nisa ensure it recruits and retains volume and guarantees retailers purchasing loyalty? Give members access to winning deals Reward them for purchasing loyalty through Nisa Promoted brilliantly to their core audiences Offer brands and own label products priced competitively But also, a complete top-to-bottom support on utilities Make our scale and the current market work for us through buy for less.

13 THE NEXT STEPS

14 THE BIG BENEFITS Nisa s scale and wide reach ensures supplier penetration Volume through Nisa fuels negotiations with suppliers Disciplined buying aids competitive pricing and promotions Nisa s collective purchasing scale aids recruitment, important in driving further growth & competitive pricing..

15 THE BIG BENEFITS.So recent new business; 1 billion My Local deal, 75 million Sandpiper CI deal and 250 million with Ramsden International is good news for Nisa and its retailers

16 STAYING AHEAD OF THE CURVE Nisa now makes its decisions based on sound evidence Insight and data teams within the business lead efficient buying Greater market and shopper understanding Data and product tracking across all ranges Deals scrutinised for performance and justification

17 STAYING AHEAD OF THE CURVE Nisa now makes its decisions based on sound evidence Feeds into better planograms, merchandising, core range and range reviews Greater knowledge means smarter buying Investment put to better use for members.

18 STAYING AHEAD OF THE CURVE The intensity of the competition continues to put pressure on the market Heightened further as Amazon Fresh enters the sector Our insight into consumer trends gives us a competitive edge Fresh and chill continue to grow in importance for consumers

19 STAYING AHEAD OF THE CURVE.and our volume growth in this area allows for greater quality and lower costs There is massive opportunity to develop the customer relationship.

20 STAYING AHEAD OF THE CURVE With a customer proposition that shoppers can relate to, through a mix of service, range, price, local products and community participation. Nisa s mutual model, which encourages independence, entrepreneurialism and innovation, aids this. Members encouraged to stock local produce to provide local link to the community

21 STAYING AHEAD OF THE CURVE Its local sourcing network allows for collective purchasing and central invoicing from local suppliers as well as BIG brands. Creates a clear point of difference in the race of market share.

22 IN SUMMARY.